Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Methode Electronics First Quarter Fiscal 2024 Results Call. At this time, all participants are on a listen-only mode, and a question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to your host, Mr. Robert Cherry, VP of Investor Relations. begin. may you Sir,

Robert Cherry

Good earnings welcome conference operator. fiscal Methode XXXX first-quarter call. morning, you, to and Electronics' Thank

For this be call, at Fiscal webcast XXXX we this methode.com have prepared quarter of page. results, a on financial the which or can call viewed Investors the first on found presentation entitled

under Harbor statements, to contains These as expectations of date reflect hereof. regarding the laws. and to future to the or securities provided otherwise. update any This conference on statement results which duty performance protection undertakes no or only call expectations the events statements speak Methode subject actual are forward-looking Safe quarterly Methode's certain forward-looking management's forward-looking and conform changes operating basis a the statement in to

this and call of conference number a uncertainties. in risks involve Forward-looking statements

cause our and The with filings as Securities differ results actual detailed are factors in our to that reports. such expectations Commission, Methode's materially could XX-K and Exchange the XX-Q from

the President time, call this At Mr. Chief Officer. and Don I'd to over Executive to like turn Duda,

Don Duda

Thank and comments good will our earnings us first-quarter your Thank our everyone. joined for have and will Both morning, you we questions. XXXX joining call. Officer. Ron by Financial for Ron fiscal Chief I'm today and Tsoumas, then I opening conference Rob, take you,

Let's begin four. on slide

the Lights. due $XX Nordic million to for $XXX million. from to mainly year, acquisition They a of sales quarter Our solid compared in were prior were up the X% the sales

in for in lighting segment were vehicles. segment, and mainly X%. and industrial was was exchange, our by freight The foreign Lights, drop sales commercial sales driven solutions higher offset customer-reimbursed by which to spot Nordic significant down lower auto due sales partially premium Excluding the in material cost recovery, a buy decrease

a from solutions. exterior solutions building With of our Methode solutions interior our working power growing commercial existing contribution lives distribution franchise and and business from is complements for vehicles clearly lighting automotive, lighting that Nordic and and the ongoing the addition

experienced personnel shortages, unmethylated, are Operational led delayed inefficiencies a and inventory some and we leading spot salary shipments. our auto and very quarter, North poor planning subsequent to like, vendor There's premium which challenges. deficiencies. turnover, decisions, in In to effect the domino by operations unreimbursed turn at American purchases, operational mainly freight, production operational caused issues, some

full the can While share you nuanced, what picture essence occurred. with is of I the

to Our late on Methode. and a volume the of Monterrey This a with warning has operating mix mitigate Recently, of mix into volume. led but combined lower operation products. that higher the failed has exposure manufactured historically our detected inefficiencies mode also a transition low the with transitioned of early to very operation and issues aforementioned high we system

both ultimately In a form and lean and to material buying, significant manufacturing costs shortages problem freight the necessary a and generate premium spot delay visibility integrity. address of immediately customer maintain environment, delivery a can of in

our In our auto, challenges and both relative maintaining earnings obtaining paramount to new quarter on delivering impact first operational an addition to These approximately to $X.XX quality had expectations. is business. absolutely

We numerous to the also launches. had related accelerated program expenses

corrective action and are including seasoned tell former hiring operational plans the identified U.S. the of challenges confidently in have in can I already these been you place, planners

the However, to degree, a guidance quarter the second drivers same to and for our the are e-bike the earnings weakening along impact the lowering effects residual approximately significant expected with primary of our to market, full-year.

continue and the a was the that personal been CEO you with personally and unmethylated will be we will efforts very situation. I as this to As and commitment have fix as to On the correct involved I've shareholder, my this. said, have

by were electric program quarter once awards. led Moving These to $XX orders. million We again annual had a over programs. with vehicle programs solid in

clear operation of that Medical. everything a a to became abundantly from After including formal path the the business, multiple sales Dabir process was for forward. to pursuing discontinuation best continued financial Turning it avenues strategic the

I well all who as their the associated with employees provided efforts customers and business for want product. Methode to market as the the the Dabir the thank Dabir opportunity to

the In $XX were million of Sales rates activity new be quarter our XX% roll-offs. won Turning OEM EV fiscal consolidated on over will as the total. strong, we back but to awards, in for well dependent program activity. programs of be very as we'll EV still in XXXX, annual take timing

our driven sales In an the in which capital to debt, an leverage working launches consequently relatively increase is had our increased, has in debt our while by low. and and is quarter, we program it still investment support

for deployment, investments, for are additional our buybacks, comfortable we with capital very internal or whether share it's such, flexibility As acquisitions.

our As year-end the we flow due cash payments to however, in full return the quarter in is second fully meaningful to for flow expect the with quarter first cash quarter, have positive free to and items year. for in free positive typical negative cash flow

full and at slide sales to million of in represent identified quarter Moving five. annual represent The wins in awards the here the production. $XX key some

XXXX. reminder, of range architecture, a As these the are to weighted the the mainly solutions in fiscal years not now. EV also although sensor awards the awards could strong. awarded and solutions programs other one be EV three continue quoting be e-bikes In be The continues in timing areas, towards anywhere for launch most programs activity from are where auto products power for skateboard the States to United until with to of of launching and we associated lighting

sales healthy, especially end in program continues including to be Lights to awards Nordic continued by the slide pipeline quarter own well The for solid XXX% shares the is progressing and summary, EV. the The be the we of quarter. expect in to to integration In second six. applications. of EV Turning

well on in as unacceptable efficiency, my immediate management focus laps the inefficiencies. as Lastly, focus quarter operational the those included is entire team's correcting

identified stated corrective have have operational I As are and actions the been issues underway.

continue to focus launches. a also executing on new program will heavy our We have

continue to especially expect program we and Turning low outlook. e-bikes, in to XXXX. fiscal our roll-offs in Due weakness key organic expected sales to the markets

These launching is only awards programs. tooling expected new from increased XX% grow significant In to XXXX. XXXX. programs to significant the and addition, sunsetting This to with multiple enable organically investments years investments fiscal XX along to business a over be to ensure replace but us not activity staffing strong include of successful and fiscal we the will XXXX making

not solutions we on positioned changed. guidance fiscal is from XXXX our view the the and lighting is power taken to Our that business. prosper demonstrates has to that into and This business strategic model direction grow healthy have

the me like proud recent as to time Before simply years of to for I all the a I of CEO, it am retirement. and company. Methode next conclude, my enable personal journey for team stage step would achieved Methode has tremendous served the announcement of to XX to journey Leading address and and incredibly professional our is begin. the me been grow I down Having successful

a I to sometime through in will has the the am work then believe company team extremely I positioned place ahead. is that conclude we'll that and Methode's the which confident named that transition expected fiscal until truly still actively exceptional I a been will solid to Meanwhile, the for are brightest successor strategy continue is company period, in to CEO flourish an XXXX. lead and with continue given growth. days extended new

as over on who more Ron? this provide more turn on to call the will point, quarter outlook. detail first At details will our as financial Ron I our well results,

Ron Tsoumas

morning, and slide good Don, Thank Please everyone. turn eight. to you,

$XXX.X an sales to million net increase million X.X%. compared quarter were of in First $XXX.X fiscal 'XX,

in and sales buy $XX.X positive from and was Nordic quarter's from translation. acquisition impacts the Partially spot million This those favorable lower million $XX.X included Lights freight $X.X currency recovery. premium cost million offsetting

sales impacts Lights, foreign cost by Nordic Excluding currency a recovery decreased year-over-year in X.X%.

to North solutions also the America. vehicles, program this addition for Lights, continuation Nordic in ongoing strength a saw quarter's of In roll-off large lighting but commercial it

$X.X and Nordic of restructuring from to million fiscal Adjusting costs operations XX.X% to of Lights unfavorable in from decreased related $XX.X for fiscal income decreased from from the mainly to quarter million expenses, 'XX $X.X million to sales million S&A operational net XX.X% non-GAAP 'XX. operations acquisition income $X.X exit costs product and Dabir million efficiencies, our to $X.X from in First due higher $XX.X adjusted million, mix. related

turn to Please slide nine.

diluted was government from and year. diluted last costs restructuring higher higher and mix, earnings of net quarter to $X.X $X.XX our million from of in Adjusting $X.XX $X.X of absence $X.XX costs share impacted interest per adjusted unfavorable the fees, assistance, period acquisition diluted expense. share XX.X% $X.XX the in non-GAAP operational sales inefficiencies, EPS fiscal same for fiscal XX.X% professional per million, per share to net from 'XX. per product First decreased The negatively share decreased the EPS

mix, higher period impacted of decrease. higher financial was the quarter expenses, first to government the EBITDA the and measure, fiscal in $XX.X a Shifting negatively versus unfavorable last $XX.X million operational costs, sales million EBITDA, assistance. by same a XX.X% year, non-GAAP was absence SG&A EBITDA

partially costs restructuring to for contribution XX.X% $XX.X the The of helped from X.X%, to 'XX. EBITDA adjusted costs of offset fiscal decreased our million decrease. Lights from Adjusting $XX.X $X.X million in and Nordic million acquisition

increase end the million 'XX. of of to of to million by support capital launches. $XXX.X increased cash, Net quarter at investments last to Please program due CapEx the sales $XXX.X million the measure and working end quarter, the million financial $XXX.X capital the higher with working XX. debt by down $X.X quarter new turn was in Again, driver We the mainly non-GAAP CapEx. increased million in $XX.X from from year. $XX.X fiscal million slide to the a We for both debt fiscal main gross and and ended

approximately debt times, to trailing was ratio was ratio trailing X.X XX-month XX-month debt net EBITDA EBITDA times. Our our to X.X approximately

Please turn slide XX. to

of fiscal to to income $XX.X inflow primarily activities was wasn't First The to quarter the million decrease of an as compared $X.X operating outflow in compared million $XX.X net net from lower million in cash due as 'XX. quarter. an

a investments 'XX, support in First $XX.X million of increase The keeping guidance. our launches product and of with was million compared $X.X new fiscal in to quarter $X.X was increase an function as mainly was capital million. expenditure to

financial of and to net fiscal primarily non-GAAP CapEx. First $XX.X million. compared quarter income was to a million 'XX, in was decrease This flow million a $X.X free as positive increase decrease negative a measure a cash $XX.X due reduce again

to turn slide Please XX.

operational quarter. the on is first over based it variety on guidance, a $X.XX on quarter change and quarter. will the second second first slide. similar forward-looking due in carry The in best in to as approximately was a to EPS management's expect experienced and impact inefficiencies EPS we the estimates subject factors impact The quarter the on to noted this Regarding of

to In legal addition, sales decrease experience our fees. in we relative and increased a expectation original to professional volume expect and

exit, the guidance The of is we range expected share second million. $X.XX for is Dabir quarter for expected share to quarter. net The is $X.XX for to $X.XX. second earnings short earnings $X.XX. million headwind, diluted to $XXX the sales per related $X.XX 'XX adjusted per are $XXX range Given fiscal diluted we providing to expected costs the Adjusting

Turning the million. the The to of fiscal the to at for year, the range second North share fiscal experienced Full-year America and $X,XXX down of related half sensor drop of $XX the previous by guidance full business slowdown a diluted and the per sensor predominantly a sales and of year. $X.XX. half decreased operational first our year. range sales from to $X,XXX 'XX million fiscal expected softening second in to in mainly was earnings auto to range in to due the being the The in is $X.XX the the in expected sales second midpoint, million is $X of quarters significant $X.XX net inefficiencies

margins well enjoys sensor consolidated Our gross the above level. business

benefits for assumes million million with Adjusting tax is to acquisition, guidance discrete The million. XX% of diluted of million income $XX the CapEx fiscal to depreciation the $XX related of 'XX and expected of assumes related tax $XX per and Dabir between Lights It to XX% to earnings Nordic exit adjusted and range $X.XX $X.XX or amortization rate assumes no expenses. the $X.XX. share and an costs to $X.XX $XX

between of percentage fiscal year be sales guidance also at growth benefits represents is 'XX unchanged range. XX% in no the ahead The sales from from the The range operations remains midpoint XX% expected XX% or net net net tax income XX%. million The $X.XX income to at 'XX with range Looking of as $X,XXX and rate 'XX fiscal fiscal the to year 'XX, tax expenses. to to sales midpoint that expected is sales of discrete fiscal of organic million. unchanged a $X,XXX expected

my that concludes Don, comments.

Don Duda

now. thank prepared very Ron, Operator, questions much. are you take we to

Operator

we'll time, this question-and-answer session. At you. a [Operator you. Thank be Thank conducting Instructions]

is question coming first Baird. Junk from Luke Our with

Your is line live.

Luke Junk

lines wondering just June auto a sight taking What a especially corrective issues you the Hi, in line second that last you're the in specifically not, want what case taken the morning. questions. to anticipating now that good you've guidance to the sufficient confidence I'm Thank gave and and the vendor not morning labor how more what business, further for have actions risks up the Thanks you offset in start the late the had would is I when saw. that be in or the your benefit? you with half, you. of extent this expected with that will be action doesn't what is

Don Duda

Okay. Through the of pretty two track. much were months quarter, we the first on

at that's are air July a when miss, go and of apparent become of driver once -- up when product, freight didn't the the it. main Now, we start postmortem there issues? back Yes. look magnitude really do the it costs the dramatically. the The I and And outbound until inbound you go on really to that's where and freight

the Confidence, we will to dropped of the need levels, we this quarter. know replenish go that. inventory second some We've into

So, inbound let's very said we're some could very feel and involuntary. employee they a time. the confident, my seasoned mix, still and freight call It's mix, low that coupled a with did some it's pretty outbound confidence well volume, had my high To high-volume to plant, lower me, we're some with Methode, management but to we I prepared turnover what on producing. What's if to consoles disturbing in center have transition said going which going voluntary some remarks that. wouldn't issues and from premium to team, I have Hi, more didn't I this fix level? it

that that. We're excellence. decision-making operational confident correcting. And for known some I so, we're am of our

that guys is. know had some fix So, the people confident. will correct this one we I'm for replace ops is and -- But seasoned will we corporate there We've that me. down we what are

Luke Junk

Thanks for that, Don.

your some business mentioned accelerate hoping the status tone price today the here the or on go cost we release. fairly recovery fiscal is could conversations you we inflation to expect incremental that of quarter, where first comment customers the the year? Second, of is the modest was in balance through in with in just And should as

Don Duda

for with difficult We've our That's discussions -- had always a double-edged sword some stressful customers. very us.

us with concessions. have this been some And of automakers past some getting on the price of the this tougher not is but in been where has even

going So, going be forward. to struggle is that a

the Purchase turned or issues our get one Now pressure did We the I will our our where negative. attention was Variance that years supplier last suppliers also plant has to although you the is other be put Price issue, suppliers of our carefully. couple in we've with feel been has to an had growth, or PPV had can which for that we Monterrey of done and we we on tell change our

putting more going product will don't we our get better as also the in help put coverage long these that has see margin there's and than team But I forward. tread Monterrey, think We're be increases, We'll continue And pushing attention pressure to and our price we've but it. improving don't get programs, for going will while Methode. will many our to and going overhead I'm and I as there, being a in that gross I think customers help think so factory that to diversified, a will terms our the pressure relationship. destroy us taking that I good I think not avenue efficiencies launch particularly new only we relation again vendors. lightly in term, and auto of -- done on automakers with we're more we that to of in a although coal, job bank so customer

you Ronald will the... give

Ron Tsoumas

now, years, stablize that and emphasis the though which that and getting was anything, pivot you're couple to towards I standards. more of I historical supply we're going to an in positive on back more procurement pivot side, think more you're that of from over a was the to -- we've that to had getting even some supply think see premium going I have to see going and PPV do past procuring missteps of think us our challenging

Don Duda

didn't can guidance. season teams of areas our it. one had We that this on we our We've all into economize we put year's it build the purchasing on of VPs at and look

what fruition. not overhead the paper, just so, they And from to we'll PPV. come But see on as improvement, as I've but seen 'XX, coverage gives me see we're confidence definitely that going go will -- into to from we some

Ron Tsoumas

we're again changes going the causes be cautious on And because little to problem. a more that vendor

Luke Junk

of down could forward in question, Thank on you in my for extent the if overall, implications medical the business, have you. you what bigger expand picture P&L. to wind specifically, Dabir then interest [Indiscernible] the decision last And and the just costs to any the hoping going

Don Duda

spending the in -- of definitely to that that's That saves orders one no But is scale. money. It that it of indication us discontinued one just funding. scale. tougher going at we to helps outside our It's decision look was it ones But when -- we it that to it And one made from -- was, received. I've probably look for was of for well is not my at I scale career. people, did was expensive be where we an the we to was difficult It difficult time where and look the customers, received should maybe now. very should to amount be

to to process no -- out I continue sensors I Medical struggling. time them and much didn't companies on areas. sent it. no think on that and think there in the detail, a there wise, business we those concentrate I well. those and that I three areas, business two I of and think mean in until had formal and were We management in were too book was other sales XX are don't -- one interested have I we We go -- did to hospitals to team the scale medical, returns EV, want on end, user concentrated very areas think we the is XX but the And of some into three

business. to line, it time the bottom discontinue was So,

Luke Junk

it. I'll it you. Got leave Thank That's helpful. there. all

Don Duda

Yes.

that's again if years. have a way but seen approach, I another its will should think, don't would Methode I our think different taken be I us polishing And assets. Luke to literally it could take breakeven, five where

Operator

you. Thank

Franzreb is Sidoti Company. and question coming John from next with Our

Your is line live.

John Franzreb

morning, thanks to production and back to this what and disruptions, labor guys, of pulling wanted is more implied the pulled the the quarter the questions. down from the Good balance down it that for taking last number? I and revision, go expected EPS quarter than you $X.XX you

Don Duda

The EPS, lower mix product efficiencies, are two and the main drivers... and operational

Ron Tsoumas

you a or Are about full-year quarter? taking

John Franzreb

year. Full

Ron Tsoumas

Okay.

Don Duda

Yes. Yes.

So, right to the inefficiencies product the... operational look at largely mix, due $X.XX

Ron Tsoumas

E-bike.

Don Duda

total. in …sensors centers are lower volume and main and the data Those organic drivers.

Ron Tsoumas

areas choice week going down our year the studied going over-inventoried Those year that next are said are e-bike point -- three no that and change there's profitable into and in forecast, as of to very the although well. but we And again we weeks have then estimate by the best at but maybe and then and market, to we've their effective EPS. for bring still that our market the with The concluded products. ago, ago, most e-bike be profitable duration customer, far the a two

was to react COVID during had Yes. by very do Now, shortage surplus. are our and expect to is e-bikes return? And seeing a to there every what mean customers popular always that. I but followed spike that we a and that's we are

John Franzreb

Okay.

peak couple us you based e-bikes a are revenue contributed and answers. on contributing of of how much on today? your what a they things Can give quarterly Just context

Don Duda

quarter-over-quarter. We've --

John Franzreb

No.

its contribution? revenue general. At in what Just was e-bike quarterly height,

Don Duda

From its peak.

Ron Tsoumas

XX%.

Don Duda

So, that's significant.

John Franzreb

think Okay. you do you And can...

Don Duda

half. second the In

Ron Tsoumas

In the second-half.

John Franzreb

do in And revenue e-bikes? think about you XXXX sustainable be would for a what

Ron Tsoumas

XX-ish.

John Franzreb

Alright. Okay.

wondering, I to trying Just just bracket all... that was

Ron Tsoumas

I'm sorry, say that again, please?

John Franzreb

quarter, everything. you're posting the so companies guidance data pulling and the your from just just in the centers because you has there the is seeing it's context I year for datacenters with actually And just last also you're to most data -- trying weakened results. what of mentioned that from I'm I'm actually companies relatively follow positive, disconnect get a good the And datacenter centers [Multiple guidance, fairly impacting trying of to be or to you down or how actually one Speakers] reasons of other in is the next market business seems

Don Duda

John they're there us customer that major told over-inventoried. Our has

we've it's got are So, very has us and market not major that told one the they customer over-inventoried.

John Franzreb

Okay.

on that other know Okay, what like? of run the the second SG&A I these half what you fiscal normalized you to all right. would rate it And switching the in for be expect expenses, be said fees a would off there, year, SG&A

Ron Tsoumas

amortization in less it to in half year than range. be the would without compared being expect leave out years XX.X% -- second the XX% well, XX.X%, XX% it but the prior We amortization I'll as be to experienced to in in of higher the quarter, a will

So, somewhere in between there depending.

John Franzreb

Okay. And that reflects right? assuming, Nordic, I'm

Ron Tsoumas

Pardon me. Yes.

quarter amortization and Lights, at in first XX.X% of The all correct. without Nordic numbers XX.X%

John Franzreb

Right, right, right.

Okay.

let somebody Okay. all queue with I'm guys. and That's the jump going questions. Thank the you, to ask had, else back I

Don Duda

you. Thank

Operator

Our coming Instructions] Prestopino Gary with Research. from is Barrington question [Operator next

is live. line Your

Gary Prestopino

Hi, everyone. morning, good

Don Duda

morning. Good

Gary Prestopino

I down on you about in want your to Mexico were facility. Monterrey, talking what drill

producing going because And away. the Is that center was has away consoles gone the Don? model basically of bigger were products. business is that I are right, one think they that correct? You

Don Duda

not consoles more that Right. the SUVs really we are trucks At the least, are touchscreens. anymore. are discrete using vehicles on pickup and Center vehicles

in So, that this product used went end not but of auto. us only is life, from not

Gary Prestopino

Okay.

Don Duda

smaller transmissions say to units. transition not is still products number life, volumes when that's million, I lead that a end of why high It have but XXX,XXX as replaced talking that don't have and was here. XXX,XXX the X very also They know a that them we're has a is significantly been Those I gone volume has frame about well of for don't smaller volumes, down. I that for also and totally by

good. be have a systems through -- Your number you of systems to your to quite going have need the be plant, when products

Gary Prestopino

Okay.

national have Monterrey, from that someone is that? Mexican plant? did this Or was doing the you U.S. Mexico, a So, running there

Don Duda

of probably and seasoned oversee other the to and and we've What run train most because launches will later the transition, the we brought plant. he to our operations then done in, individuals the plant,

he not small is Speakers] a but U.S., so is essentially, is [Multiple not So, and he he --

Gary Prestopino

I'm sorry.

Don Duda

also me I'm gives these will sorry. confidence us. issues behind that That be

Gary Prestopino

question is would of can are have end to you smaller the the life programs that kind plant, of that or of point from producing I got volume? that the or guess or whatever where the on out the get down replace you've equilibrium progress you sales going lost some I Well, slowing these even growth by we

Don Duda

Yes. the business the has I Monterrey. said, lot The business won, -- of individual, in those now those been -- seeing out as a EV products made are that launching the has the is plant And we're past. of

up to I'm they're business. now -- is But not cranking production days. that happened console we -- it in more obviously had the confident happy center see I'm but in And even plant will an that So, uptick than are so in happen I when XXXX. through very with much have know what than it rather their going that I'd have volume

Gary Prestopino

Okay. lot a the... of But

Don Duda

to lower one a like when we the don't Qs years. from course, going were console higher continue, Ks didn't mix. dependent booked that volume, concerns transitioning saw I of automaker we again program that day what and had through upon and in our like large the we And but we're that to and it one center I business of pain the to be the one here, but even I

business, us we're blip, but I one. a we pain, fact will gives that gave I But customer $XXX one diversified just diversification makes yes, major I had us more came again number if there's upon that. think of that that some it I deal worth be superior. of the better a with and but not think and that that knowing customers, like dependent I'll a us And sleep better take do million we've I would and a

Gary Prestopino

volume happened Right. really that But operational the issue what an that -- from to that high have terms to last of have. low it they thought weren't efficiencies at was where the I were is wasn't the that's most sense the wasn't question the fact caused kind of guess plant I of It sales the in biggest going that mix, I in the was volume you that just issue regard would by there mean I big? the shift

Don Duda

do a we not had Not to about But e-bike did sell that and ourselves to that all. I is No. ship internal but then course, and a what the good like in I a us fix. cost the lot to we an ours can e-bike sensors But I at is issue, take more I ours about of we can can, something factory. execution -- sales comfort can't sales those. anything that. issue little I is do

one I I So, do -- to only I but is take don't mind. think comfort it comes the right word John

Gary Prestopino

thank you much. right, very All

Don Duda

Thank you.

Operator

you. Thank

with Franzreb Company. John Sidoti from coming is question next and Our

is line live. Your

John Franzreb

you A we kind about ACT of expectations more a just A that has the its talk ACT today. bullish Class trucks. of downturn of Yes, avoid narrowing market, that the in the potential What your the It truck can bit? thoughts trends, on that or current little think bearish to depth and -- I seems duration are touching are Class market you been

Ron Tsoumas

We've seen as down. I'm go -- predicted. bottomed I an we've decreased that can't but say to saying had more not going ACT it's not comfortable increase hasn't it than

think X% said that. now, they like like I something

for is comfort line will 'XX. gives So, it I our dip below faster, but mean, additional the recover maybe which me view average

concerned but quarter I'm if not was less a than it So, yet, helps. that ago there quite I'm

John Franzreb

actually It sense It me. to does. Yes. makes

all Okay, right, thank you. Thanks my taking question. for

Don Duda

the you called need I close apologize, And questions. of john to Gary, I at your apologize. I

John Franzreb

okay. It's

Operator

Thank you.

of the question-and-answer session. our We end have reached

to closing back it hand now will I remarks. So, Duda any Mr. for

Don Duda

everyone Well, us thank thank Good you for joining and operator, today. will day.

Operator

disconnect concludes participation. this time. This you thank conference for lines today's you. at and We your Thank your you may

Methode Electronics (MEI) 7 Sep 232024 Q1 Earnings call transcript